TM - December 2007 - (Page 35)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning Figure 1 Performance 1.0 (Competitive Evaluation) Core Focus Assessment Focus Evaluation, ranking and rating of individuals. Evaluation, rating and ranking among peers, using grids, numeric ratings and forced ranking. Rarely used or used as a standard list for assessment of potential. Performance 2.0 (Coaching & Development) Alignment and improvement of individual performance. Alignment and improvement of individual performance. Used to assess strengths and weaknesses, to assess potential and to create developmental activities. Focus is on unique organizational competencies. To improve overall workforce performance, increase effectiveness of individuals, improve organizational alignment and increase engagement and retention. Improved overall performance and leadership, increased alignment and teamwork, more flexibility in the workforce and likely improved employee engagement and retention. May leave out business-driven goals; focuses on business outcomes. Organizations going through transformation and change, or those with highly competitive environments and tight labor markets. Also, organizations that have suffered through business downturn. Competencies Goal To develop equitable ratings, reduce compensation expense and differentiate high performers. Benefits Clear distinction between employees, ability to “weed out” low performers, reduce compensation expense and focus dollars on high performers; create a high-performing culture and a meritocracy. May create unease and competition among employees; demands that managers be highly trained in assessment. Potential Downside Organizational Culture Heavy focus on bottom-line results. High-growth organizations with rapid expansion, or turnaround situations where entitlement has created low levels of engagement. change their thinking about performance management and the role of the performance appraisal. Highest-Impact Performance Management Processes 5. Manager appraisals 6. Competency assessments 7. Development planning Six of the seven processes fall into the category of coaching and development. The “odd man out” is the management appraisal process. Not so coincidentally, this is the process that causes greatest angst on both sides of the desk. In recent research into high-impact talent management, we evaluated 62 different talent-related business processes among more than 700 organizations to identify which correlated to the highest levels of business outcomes. The above seven performance management processes were included in the list. 1. The process with the highest business impact is coaching. Coaching generated a 150 percent Through our talent management research, we identified seven interlocking processes that comprise today’s performance management. While few organizations use all seven, most do incorporate several of these processes into the performance management function. 1. Periodic goal setting 2. Alignment of performance goals with organizational goals 3. Employee self-assessments 4. 360 assessments December 2007 34 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - December 2007

Talent Management - December 2007 Editor's Letter Contents Letters to the Editor Human Performance Leading Edge Capabilities The Engaged Difference: What People Want Analytics in Talent Management: The Sports View The Use of Merchandise for Employee Recognition Taking Aim at Performance Appraisals Talent Management Drives Organizational Change Generational Diversity: Mastering the Boomer-X-Y Divide Dashboard: Security-Savvy Workforce: Designing a Security Awareness Program That Works Application: Hilton Hotels Corporation:Checking Out the Merits of Paperless Efficiency Insight: Unlimited Engagement: Innovative Corporate Communication at Deloitte & Touche USA Advertisers' Index Editorial Resources Foundations

TM - December 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.